On Thursday morning, USDJPY continues weakening as investors’ demand for “safe haven” assets remains strong.
The Japanese Yen is in demand against the USD. The current quote for the instrument is 110.02.
The World Health Organization announcement on the Chinese coronavirus made yesterday was supposed to calm investors down, but it didn’t happen in the USDJPY. The WHO believes that the virus can be contained despite its transmission speed in Italy and South Korea.
Market players say that after the coronavirus hype dies out, the Yen may lose its status of a “safe haven” asset. They believe that the Japanese currency is already a thing of the past when it comes to “safe haven” and may no longer help investors to hedge risks when they require it.
In fact, there aren’t too many alternatives to the Yen as a safe asset. It’s the same if one says that the USD era as a global reserve currency will be over soon. It might be this way, but finding a worthy alternative might take years. Meanwhile, everything will remain the same.